Policy Insights Using NEMS

OnLocation has extensive experience using integrated energy modeling to assess the costs and benefits of energy policies and technologies and provide insights into potential implementation challenges. The National Energy Modeling System (NEMS) is the #1 most trusted integrated energy model for energy projections and policy analysis in the United States.  The model is used to develop the EIA Annual Energy Outlook and is OnLocation’s primary integrated modeling tool.

We are uniquely qualified to create customized applications of NEMS to meet our clients’ needs.  These can be as simple as changes to model inputs or as complex as building an entirely new module for integration into NEMS. We have demonstrated over and over again that we are the only private entity that can with confidence take on these modeling challenges. It all starts with the client's specific question or set of questions regarding our energy system, whether it is potential impacts of environmental or tax policies, energy efficiency or fundamental shifts in our energy resources.

Below is a sample list of scenarios designed to provide additional market insights. All scenarios use the latest version of the NEMS model and can be purchased individually or as part of a broader study as described in the OnLocation Services Guide.

• Alternative Energy Futures, such as high/low oil prices, high/low natural gas resources, or high/low macroeconomic growth. For example, see our case study titled “Domestic Natural Gas Price Impacts of Liquefied Natural Gas (LNG) Exports.”

• Technology Costs and Incentives such as high/low technology costs, or tax credits for renewable, carbon capture technologies or electric vehicles.  For example, see our case study titled “The Potential Role of LNG Trucks in Reducing Oil Demand.”
  
  
• CO₂ Policy Scenarios such as CO₂ prices, CO₂ cap-and-trade, or clean electricity standards.  For example, see our case study titled “Analysis of Regional Approaches to Reducing CO₂  Emissions.”
  
  
• Energy Efficiency and Consumer Behavior Policy Scenarios such as appliance standards, national building codes, CAFE standards, more advanced end-use energy equipment, equipment rebates, or lower discount rates for investment decisions

Our NEMS-related services include the following:

• Initial consultation to discuss an appropriate approach and set of scenarios to address your energy questions and goals for the study
• Customize the model with your market or technology assumptions including adding new capabilities to the model as needed
• Review and summarize scenario results focusing on insights gained for your business needs, including projected impacts on future energy prices, energy production and consumption by sector and fuel, and environmental emissions
• Provide useful tools to further explore the model results including targeted presentations, charts and online data visualization tools
  
  

Model Description

The National Energy Modeling System (NEMS) is a detailed computer-based, energy-economic modeling system of U.S. energy markets. NEMS projects energy supply, demand, imports, conversion, and prices to the year 2050.  It is the #1 most trusted integrated energy model for energy projections and policy analysis in the United States.

The NEMS model was developed and is maintained by the U.S. Energy Information Administration (EIA) for use in developing annual projections for the "Annual Energy Outlook" and for evaluating energy policies based on service requests from Congress and various government agencies. 

OnLocation has provided technical support to EIA in the design, development and application of the NEMS model since its creation. Our technical and modeling experts have made major contributions to many of the modules of NEMS; however our largest contributions have been to the Electricity Market and the Liquid Fuels Market Modules.  We also built new modules for use in NEMS including the CO₂ Transport, Utilization and Storage (CTUS) Module and the REStore Module that provides a detailed hourly view of electricity storage and variable renewable generation.

Common Questions about NEMS:

What Can the NEMS Model Do and What Can’t it Do?

How Much Does it Cost to Run the NEMS Model?

How Long Does a NEMS Model Run Take?